What is Cross Merchandising? Rules and Examples

What is Cross-Merchandising?

Cross-merchandising is a special in-store merchandising technique that increases sales by placing complementary products next to each other. The idea involves arranging goods in such a way that they encourage spontaneous purchases. For example, pasta next to sauce or coffee next to desserts.

The main product is what the customer comes for purposefully. It is the centerpiece of the layout and focuses the customer's attention.

An accompanying product is an add-on that enhances the value of the main purchase. Its task is to be visible and logically connected to the main product.

Objectives of Cross-Merchandising

The objectives of cross-merchandising can vary from business to business, but the basic objectives remain universal:

1. Increase sales. Proper cross merchandising encourages customers to purchase additional merchandise.
2. Increasing the average receipt. By evoking associations between products, a salesperson incentivizes customers to spend more.
3. Stimulating impulse purchases. A customer who sees a suitable product next to the one selected is more likely to put it in the shopping cart.
4. Improving buying behavior. A well-organized assortment layout simplifies the search process and makes shopping more comfortable for customers.
5. Educating the consumer. By demonstrating how the product can be used, the salesperson helps the customer discover new ways to use the goods.
6. Promotion of new products. Placing new products next to popular items increases their recognition and chances of purchase.

Rules of Cross Merchandising

For cross-merchandising to be effective, it is important to follow a few key rules:

• Combination logic.  The connection between merchandise should be obvious and functional. Syrups can be displayed next to the coffee department, and sanitary napkins near the department with baby goods.
• Convenience of location. Layout should be accessible, and goods should be at eye level or within easy reach.
• Aesthetics and order. Goods are placed neatly and attractively so as not to distract the customer with clutter.
• Seasonality. It is more effective to offer cooling drinks with appetizers in the summer and hot drinks with desserts in the winter.
• Monitoring and analytics. Regular evaluation of the effectiveness of layouts allows you to adjust approaches in time.
• Zoning. Additional products can be placed at the end of the shelf, in the checkout area or above the main product to maximize the emphasis.

Examples of Cross Merchandising

Cross merchandising helps build logical product associations. In grocery stores, you may find successful combinations such as wines next to cheeses or skewers next to barbecue meats. Clothing stores create harmonious ensembles by placing belts next to jeans or ties next to shirts.

Electronics and home appliances also become an excellent platform for cross-layout: chargers or cases perfectly complement the main assortment. And in beauty stores shampoos successfully neighbor with conditioners, creating visually understandable pairs.

The effectiveness of cross-merchandising is especially noticeable in such retail formats as pharmacies, pet stores or children's goods departments. For example, in pharmacies, customers are offered vitamins and hygiene goods next to the main products, and in pet stores - small toys for pets in the checkout area. 

Cross Merchandising Techniques

To effectively utilize the opportunities presented by a cross merchandising strategy, you need to master the following approaches:

1. Thematic zones. This is where products are grouped together based on a common purpose or goal, such as “everything for a picnic” or “getting ready for school.”
2. Situational Sectors.

A larger-scale technique that encompasses entire departments focused on a wide range of related goods. In the washing machine department, laundry detergents, laundry conditioners, dryers and ironing boards are placed side by side.

3. Use of presentation elements.

Various tools can be used in the layout, such as:

• Open shelving.
• Floor and modular displays.
• Presentation bollards and podiums.

Aesthetically designed layout elements attract attention and simplify navigation for the customer.

Retail equipment of any configuration is available in the PlanoHero service. You can use ready-made templates or create equipment from scratch to meet your business needs.

4. Ready-made solutions.

This technique involves the formation of sets that visually demonstrate the combination of several goods. In a clothing store it can be a mannequin dressed in a jacket, scarf and hat, which stimulates the buyer to buy the whole set.

How to Control the Effectiveness of Cross-Merchandising?

Controlling the effectiveness of cross-merchandising requires accurate evaluation: it is important to compare the level of sales before the introduction of joint layout and after it. This allows you to identify how well the selected products complement each other and what changes should be made.

The PlanoHero service greatly simplifies this process. With its help, you can not only create professional planograms, but also control their execution right in the store. The tool provides analytics of layout efficiency, helping to evaluate the results at specified intervals - be it weekly, monthly or quarterly.